How to Raise Money for your Juice Bar/ Truck or Delivery Service

How to Raise Money for your Juice Bar/ Truck or Delivery Service

How to Raise Money for your Juice Bar/ Truck or Delivery Service

Steve Prussack, Founder of Juice Guru Institute
on November 5, 2020

You know that you will need funds to get your Juicing business up and running. You may have Certified Juice Therapist’s qualifications, but you still need to get the cash to establish your dream business.

For people focused on helping others in their health and wellness journey, sourcing funding for a business startup isn’t a strength we have had the opportunity to develop. In truth, the whole process can feel overwhelming – not knowing where to start.

You can go through many avenues to get startup funding, and you don’t have to choose just one route. Accessing funds from multiple sources is possible if you are organized and prepared to do the leg work.

One funding source isn’t better than any other. Your decision will have a lot to do with your risk tolerance and the different contingencies you have in place. Read on to find out some of your funding sources and how they might help.

Raising Money for Your Juicing Business

Self-Funding

This type of funding is where you invest your savings into the startup. Not everyone can do this, but remember, you don’t have to throw all of it in. You can do a partial self-fund if that is what is needed to start up your Juicing Bar.

The best part of self-funding is that you’re not required to give away any equity in the self-funded part and don’t have any loan repayments. It’s risky to put all your savings into a startup, particularly if you don’t have any experience.

Bank Financing

This funding option is the heaviest relied upon choice up until recently – the landscape is changing! It involves accessing business loans, credit cards, or lines of credit to fund your juice business startup.

You will need to show a good credit score, have your tax returns in order, and an exceptionally well thought out business plan. The banks will also require collateral.  This will usually be a house or property that you own.

The best part of a business loan is you won’t be required to hand over any business or brand equity. But, in the current climate, it is sometimes hard to access these loans. Also, the interest repayments mean you are eating away at your profit every month.

Investor financing

This funding source is where investors use professionally managed funds to invest in companies they see as potential successes. It isn’t easy to access this type of funding as a startup because they prefer more established companies already experiencing a positive financial outcome. But it’s not impossible.

This funding differs from traditional financing because it offers ownership of the business rather than repaying a loan with interest. Utilizing managed funds can have you raise the full amount of funds in one hit. However, it does mean the fund can have a big say in your operations, limiting your decision-making.

Angel Investor

A high net worth individual with surplus cash, ready to invest, are referred to as angel investors. They can work alone or within a network of multiple angel investors.

Angel investors helped fund a few of the most successful startups globally, such as Google and Alibaba. These angel investors often give business advice and are available for mentorship. But there is a cost. They usually demand up to 49% equity in the company.

Business Accelerators

This type of program is found in every major city. They are designed to accelerate your business by nurturing it through access to tools, training, and networking opportunities. They often fast track your business from concept to opening within 4-8 months. Hence the name accelerator program.

The best part of these programs is having access to mentors, business advisors, tools, and other experts, including angel investors and venture capitalist funds. These programs are very selective and extremely competitive.

Crowdsourcing

Crowdfunding offers a highly creative way to gather funds needed for startups. You can almost describe it as taking contributions, pre-orders, or guaranteed discounted prices when the product comes online. Essentially, in the juice business, you will be preselling at a small discount.

As the entrepreneur, you describe the business on your selected platform, indicating its goals, plans for profits, what funding amount is needed, and how the funds will be used. People choose to either make a donation or, more commonly, pre-purchase the product at a discounted rate.

It’s not a way you can raise vast amounts of money, but you do have creative freedom, and you can generate a community of potential customers before your business opens.

Micro investment

This funding is commonly referred to as seed investment. It’s where you access non-banking financial institutions because your traditional banking options are limited. This may be due to having a poor credit rating. It also may be due to having little or no collateral. Potentially you would be able to raise enough money for a complete startup, but you would have to do it over multiple sources. This can become complex.

Small Business Grants

Business grants are monetary funds given to a business by an organization (usually the government but not always) for a precise purpose. Startups commonly use them. These grants don’t need to be repaid. The catch is they come with restrictions. The money needs to be spent in the exact way outlined by the provider of the grant.

There are specialized programs for minority or disadvantaged groups in every state that you may access. Each state differs, but some include woman’s business grants and even veterans grants.

Establishing Relationships with Investors

Communication is an essential part of your relationship with your investors. Strong, clear, and concise communication is needed when you craft the funding agreement and full transparency in your relationship as it unfolds throughout your business journey together. It’s best to have fewer investors to decrease communication problems and be able to maintain relationships.

Also, consider your equity agreements. The investors will get a minimum of 40% in your contract. A lot of investors will ask for more. You should never go over 49% of equity; otherwise, you lose control of your brand and business.

How do you find Investors for your Juice Bar?

It would help if you talked to multiple experts in the area. Consider talking to entrepreneurs who have acquired loans or investments and what worked and didn’t work for them. They may be able to introduce you to their network.

Attend local business meet-ups and speak with the other members. They may be able to point you in the right direction of local funding sources or bank managers that are willing to hear your pitch.

To save your time and energy, consider pitching to several investors at once, rather than setting up single meetings. Pitch to 15 potential investors but only have spots for 5-8 investors. This creates a sense of urgency and action within the group.

Set up a tasting experience for local investment groups or individuals. It’s another excellent way of creating excitement around your startup.

Know what your investors are looking for. If it is purely financial gain, pitch that angle. If it’s a local philanthropic investor, speak about the potential for community enhancement.

Always think of the potential questions you will be asked by people who want to protect their money. The truth is – they are looking to put their money to work. You are essentially helping them make more money. Always answer any concerns before they are voiced. This is where your SWOT analysis will come in handy when you did your business plan.

The most important point – be professional. No-one wants to invest money in someone who is disorganized, untidy, and sloppy. People invest in people. Present yourself as someone who can run a juicing bar business and be able to do it well.

    About Steve Prussack

    Steve Prussack is the founder of Juice Guru Institute. He is the bestselling author of "Juice Guru" and "The Complete Idiot's Guide to Juice Fasting".

    Grab the ONLY juice recipe you'll ever need!

    This is The ONLY Juice Recipe You'll Ever Need! GET Juice Guru Steve Prussack's "TAPE TO THE FRIDGE" poster day. It's the same recipe that was featured in our Amazon bestselling Book, Juice Guru: Transform Your Life by Adding One Juice A Day".

    Build a Brand For Your Juicing Business

    Build a Brand For Your Juicing Business

    Build a Brand For Your Juicing Business

    Steve Prussack, Founder of Juice Guru Institute
    on November 1, 2020

    A business brand is essential for your juicing business. It establishes a connection with your customers, differentiates you from your competitors, and enhances your service or product value. It also allows you to define your identity, confidently promote and establish trust with your customers.

    Your brand is the way your juicing business lives in the mind of your customer.
    It’s not just the visual representation of the company in the form of your logo. It’s about how the customer feels – your visceral effect on them and how they experience your business.
    But to be successful at business branding, you must articulate what your business is about in a way that speaks to your potential and current customers.

    A good business brand will connect you with your audience. Your brand is a crucial touchpoint. A great brand will entice customers because it feels ‘right’ to them.

    Branding is your opportunity to speak with your customer through emotions. You want them to choose your product because it suits their needs and desires.

    A product or service that is well branded can encourage people to perceive there is additional value through brand promise. But the perception must match up to the actual experience; otherwise, you won’t get any repeat business.
    There are a few essential tenets that you need to address when you are creating your business brand. You must invest time and energy into establishing a brand; otherwise, it will be disjointed and fall flat.

    It’s often useful to get yourself a blank book to collate your thoughts and ideas in one place. This process takes time and can’t be done in one sitting. Keep it with you all the time, so you don’t miss any nuggets of gold.

    Here are a few of the things you need to consider when creating a stellar brand.

    Business Brand Values

    The first part of this journey is to crystalize what your brand’s values are. The brand’s values often reflect your personal values. Identify the values which are especially true to you.

    Deeply consider your juice business values. As a company, what will you value? As a Juice Guru® Certified Juice Therapist, what are your values? Health, wellbeing, empowerment, community, transparency? Are they reflecting you and your life experience?

    That isn’t the end, though.

    It’s not enough to think up some well-meaning words and display them on your wall for all to see. You have to consider how your values will relate to your customers. How are you going to show your consumers these values? What practical actions will you use to demonstrate these values through the way you conduct your business? Brainstorm ideas you will be able to implement when your business is up and running.

    What is your mission

    For your mission to work, you have to step aside and not make the mission about yourself and the good you want to do in the world. It is more than that. It’s about how you can set your business up to be the bridge that gets your customer from where they are now to their end goal.

    Let’s face it; most people interested in juicing are looking to achieve health and wellbeing on some level. They are your target market.

    Ask yourself:

    How is my business going to make my customer’s journey to ultimate health and wellbeing happen?

    It would be best to find the emotional cord that resonates with your customer to bring them through the door and keep coming back. Write it down and keep it front and center to remind you of the key driver behind the business.

    What is Unique about your Business Brand?

    This idea can be scary because not everyone likes to be different. People often balk at putting their unique attributes forward because it puts them in the firing line of criticism.

    But, being remarkable and unique is what propels people to share your business with others.

    Some ideas to get you started are – stepping forward and declaring what you believe about health and wellbeing. Or making it evident how you can help your customer uniquely achieve their goal.

    Don’t deny or ignore the distinctive way in which you serve your community. It is often this trait that keeps bringing people back through the door.

    Business Brand Personality

    How do you communicate your values? How do you talk to your customers? Your communication reflects your personality, and it goes a long way in helping to build trust.

    Your personality is conveyed through the voice of the writing at the brand touchpoints such as menus, notice boards, pamphlets, etc. It can also be expressed in the way the staff communicates and interacts with your customers.

    It’s a good idea to document the brand personality to be easily conveyed to new staff to keep the brand consistent. It will also be needed to give to designers who help formulate your brand’s other visual elements.

    Work towards establishing a consistent brand personality. When you build a cohesive, clear, and unique brand, people will trust you and are more likely to engage with your business. If there’s a cut off between the brand personality and the actual experience, customers will not return.

    Visual Aspects of your Business Brand

    The visual aspects are what most people consider to be ‘a brand.’ But the truth is, it should be your last consideration. To have a consistent and cohesive business brand, it’s best to explore all the other elements discussed to ensure you can place the brand’s values, personality, and uniqueness into its visual components. These components include:

    • Logo
    • Colour palette – primary and secondary colors
    • Fonts
    • Image filters

    If you have the previous brand attributes clear, it is easy to design your business brand’s visual aspects. And if you aren’t that way inclined, hand it off to a designer in one of the many online freelance platforms. Now that you have the brand values, business mission, personality, and uniqueness sorted, it will be easy for someone to deliver a visual representation that speaks to your customers.

    Remember, branding is the most valuable yet intangible aspect of your business. It can make or break your company.

      About Steve Prussack

      Steve Prussack is the founder of Juice Guru Institute. He is the bestselling author of "Juice Guru" and "The Complete Idiot's Guide to Juice Fasting".

      Grab the ONLY juice recipe you'll ever need!

      This is The ONLY Juice Recipe You'll Ever Need! GET Juice Guru Steve Prussack's "TAPE TO THE FRIDGE" poster day. It's the same recipe that was featured in our Amazon bestselling Book, Juice Guru: Transform Your Life by Adding One Juice A Day".